Billions On The Move: Tracking Market Cap Changes In Top Cannabis Firms After DEA Rescheduling Announcement

Tuesday's announcement that the DEA is moving towards rescheduling cannabis from Schedule I to Schedule III, has already injected billions into the publicly traded market for cannabis companies. But what does this mean in terms of actual numbers for the industry's biggest players?

To quantify the market cap added to the publicly traded market for some of the bigger names in the cannabis industry, we need to calculate the difference between their market capitalizations at their public debut or the earliest available data point and their market capitalizations as of the latest available date.

Market Projections 

Before we dive into the size of the cannabis market and how it grew, it is worth noting the total economic impact generated by regulated marijuana sales in the U.S. is estimated to surpass $112.4 billion in 2024, marking a 12% increase from the previous year. 

According to the recent MJBiz Factbook, this economic impact will continue to rise, reaching over $200 billion by 2030. The total amount of U.S. adult-use and medical cannabis sales is forecasted to reach $32.1 billion in 2024 and is projected to surge to $58 billion by 2030.

The Factbook editor, Andrew Long says that for every dollar spent by consumers at cannabis shops, an additional $2.50 is injected into the economy, with significant benefits at the local level. This surge reflects a 250% increase in the economic impact of every dollar spent on legal marijuana.

With cannabis rescheduling imminent, join us to discuss its impact on the industry's future. Hear directly for top executives, investors, policymakers, and advocates at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Cannabis Industry: 24-Hour Market Cap Surge

Trulieve:

• Market Cap on April 30, 2024: $2.72 billion
• Market Cap on April 29, 2024: $2.04 billion
• Difference: $2.72 billion - $2.04 billion = $680 million

Tilray:

• Market Cap on April 30, 2024: $1.91 billion
• Market Cap on April 29, 2024: $1.37 billion
• Difference: $1.91 billion - $1.37 billion = $540 million

Aurora:

• Market Cap on April 30, 2024: $439.30 million
• Market Cap on April 29, 2024: $300.80 million
• Difference: $439.30 million - $300.80 million = $138.5 million

Canopy:

• Market Cap on April 30, 2024: $1.36 billion
• Market Cap on April 29, 2024: $758.10 million
• Difference: $1.36 billion - $758.10 million = $602 million

Curaleaf:

• Market Cap on April 30, 2024: $4.61 billion
• Market Cap on April 29, 2024: $3.70 billion
• Difference: $4.61 billion - $3.70 billion = $910 million

Green Thumb Industries:

• Market Cap on April 30, 2024: $3.64 billion
• Market Cap on April 29, 2024: $2.97 billion
• Difference: $3.64 billion - $2.97 billion = $670 million

Cresco Labs:

• Market Cap on April 30, 2024: $833.51 million
• Market Cap on April 29, 2024: $741.65 million
• Difference: $833.51 million - $741.65 million = $91.86 million

Stock Performance Post-DEA Announcement

Trulieve

Trulieve's stock TCNNF increased from $10.28 to $14.37 following the DEA announcement, a 38.17% increase, and then declined to $11.90 the next day, a 17.19% decrease. Correspondingly, the market cap rose to $2.72 billion on April 30, 2024 (a 33.06% increase), and then dropped to $2.25 billion on May 1, 2024 (a 17.19% decrease). The announcement added approximately $680 million to Trulieve's market cap in one day.

Tilray

Tilray’s stock TLRY surged from $1.77 to $2.47 (a 39.55% increase) on the announcement day and fell to $2.02 (an 18.22% decrease) the following day. The market cap reflected these changes, growing to $1.91 billion on April 30, 2024, and then declining to $1.56 billion on May 1, 2024. The DEA announcement increased Tilray's market cap by approximately $540 million.

Canopy Growth

Canopy Growth’s stock CGC jumped from $8.20 to $14.88 (a 78.85% increase) on April 30, 2024, and decreased to $11.44 the next day (a 23.12% decrease). The market cap followed a similar trajectory, increasing to $1.36 billion on the day of the announcement and then decreasing to $1.04 billion on May 1, 2024. The announcement added about $602 million to Canopy Growth's market cap.

Aurora

Aurora's stock ACB price rose from $6.32 to $9.23 (a 46.04% increase) on April 30, 2024, and then fell to $7.36 (a 20.26% decrease) on May 1, 2024. The market cap increased to $439.30 million on the announcement day and decreased to $350.30 million the following day. The announcement added roughly $138.5 million to Aurora's market cap.

Curaleaf

Curaleaf CURLF saw its stock price increase from $5.10 to $6.28 (a 24.60% increase) on the announcement day and decrease to $5.66 (a 9.87% decrease) the next day. The market cap increased to $4.61 billion on April 30, 2024, and then decreased to $4.39 billion on May 1, 2024. The announcement added approximately $910 million to Curaleaf's market cap.

Green Thumb Industries

Green Thumb Industries’ stock GTBIF price increased from $12.39 to $15.35 (a 22.31% gain) on April 30, 2024, and decreased to $13.22 (a 13.88% drop) the next day. The market cap rose to $3.64 billion on the announcement day and fell to $3.13 billion on May 1, 2024. The announcement added approximately $670 million to Green Thumb Industries' market cap.

Cresco Labs

Cresco Labs’ stock price CRLBF increased from $2.14 to $2.48 (a 13.76% increase) on the day of the announcement and decreased to $2.15 (a 13.31% decrease) the following day. The market cap increased to $843.72 million on April 30, 2024, and decreased to $779.08 million on May 1, 2024. The announcement added about $102.07 million to Cresco Labs' market cap.

Market Cap Fluctuations Among Leading Cannabis Players Since They Went Public

Since 2018, Curaleaf, Canopy, Tilray, and other major players in the cannabis industry have experienced fluctuating market capitalizations.

Curaleaf's market cap decreased from $5 billion at its public debut to $1.65 billion in mid-2023, before rebounding to $4.63 billion by April 30, 2024. Canopy's market cap varied from $5.40 billion in 2018 to $1.36 billion in 2024.

Tilray's market cap peaked at $6.57 billion in 2018, declined to $1.64 billion in 2022, and rose to $1.91 billion in 2024. Aurora ACB also witnessed significant fluctuations, with its market cap reaching $18.55 billion in 2017 and declining to $439.30 million by 2024.

Green Thumb Industries, Curaleaf, and Trulieve, key players in the cannabis industry, have also experienced varying market capitalizations since 2018.

Green Thumb Industries' market cap fluctuated from $2.05 billion in 2018 to $3.60 billion in 2024. Curaleaf's market cap ranged from $2.93 billion in 2019 to $7.91 billion in 2020, before settling at $3.65 billion in 2024. Trulieve's market cap showed similar volatility, moving from $1.31 billion in 2019 to $3.79 billion in 2020 and reaching $1.97 billion in 2024.

Photo: AI-Generated Image.